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National minimum wage and other statutory payments

This section contains information on the national minimum wage, maternity, paternity & adoption pay, statutory sick pay and other useful rates and measures.

• What is the national minimum wage?
• When is the National Minimum Wage Reviewed?
• What is the National Minimum Wage for 16 & 17 year olds?
• What is the minimum wage for 18-21 year olds?
• What is the minimum wage for people on an accredited training programme?
• Can I use tips, benefits or accommodation costs to offset NMW?

  There has been clear case law on this point. A 2006 case saw an employer in breach of the NMW regulations when he reduced employee's wages by deducting utility costs for gas and electric used in the employee's accommodation. In general any costs which the employee HAS to pay to the employer during the course of his employment will count towards a reduction in his hourly rate, and if this results in a net rate of less than the NMW, it will breach NMW regs. In October 2009 new law made it illegal to count tips or service charges as a part of the NMW.

  The only exception to this rule is accommodation. As at October 2008, a maximum of £4.46 per day or £31.22 per week can be notionally deducted from wages for accommodation provided to the employee. These maximum limits will not affect the employee's wages for the purposes of NMW, BUT, if an employer deducts more than this, these additional deductions will reduce the employee's pay, and if the resultant pay rate falls below the NMW, the employer will be in breach of NMW regulations.

• How does the NMW affect workers on commission or piece work?
• I pay my Assistant Manager £10,800 for a 50 hour week. Is this ok?